It looks neat, but it seems like a lot of work for something that is impractical as hell.
I'm sure it looks lame with decent room lighting, and in a subdued environment, no-one will want to be anywhere facing that projector. It would be like sitting facing an open window as the sun is heading for the horizon.
I'll bet all the shadows and stripes on people in the room are cool too....
Feh. Wait for "active paper" technology. Then you'll see some cool stuff (if we live that long....)
RandyT